Princetontrader Futures Trading Education Daily Report January 25, 2017

MARKET VIEW

7:15am ET  Webcast to follow.

The Bulls made their best case for a move upward out of the compression range yesterday.  Bulls defended 2262 off of the open and move above 2267.50.  The 2267.50 area finally converted to support after three weeks of providing range resistance.  The result was a directional push high that resulted in converting both 2273 and creating a new all time high over 2277.  These were the criteria we have been discussing for the last couple weeks as required for Bulls to win the range.  The Bulls task today is to engage the upper band and avoid the potential of a “headfake” day that sees us fall back into the range.  Bulls did not touch upper band yesterday (it was very close) so it is imperative to their case that they engage the Daily Upper Band today if they want to begin the potential upper band ride.  There is a decent amount of expansion coiled in these compressed bands.  If we do go on a band ride understand that they tend to go farther and longer than most traders give them credit for and fighting them can be a very painful experience.  The bears get no consideration until we close back below 2267.50.

Tuesday's Post: "The S&P Futures tested s2 of the Daily pivot (2253.50) for the third time in January.  For the third time that area held and price rejected higher back into our trading range.  The bulls have no answer for a sustained trade above 2267.50.  Bears have no answer for a sustained trade below 2260.  The 2273 former all-time high has been reliable resistance and holding that area allowed price to slip back into the range.  While we made no progress on longer term timeframes the range continues to provide some good opportunities.  Each side wants to accomplish their goals.  Bulls sustain a trade over 2273 and make a new all time high to initiate an upper band ride.  Bears want to convert weekly pivot and daily midband (2260s) and test lower support areas. Compression continues on the daily chart. Resolution will come in time.  Until then take advantage of what the market is giving you."

Monday's Post: "The S&P Futures tried to break out of the range on Friday but the 2273 are held in price.  The 2273 former all-time high has been reliable resistance and holding that area allowed price to slip back into the range. Last night’s Globex found resistance at the new weekly pivot (2266.6) and traded back to the bottom of the range 2258 before bouncing.  While we made no progress on longer term timeframes the range continues to provide some good opportunities.  The 2267.50 area remains resistance and held through the overnight session.  Each side wants to accomplish their goals.  Bulls sustain a trade over 2273 and make a new all time high to initiate an upper band ride.  Bears want to convert weekly pivot and daily midband (2260s) and test lower support areas. Compression continues on the daily chart. Resolution will come in time.  Until then take advantage of what the market is giving you."

Friday's Post: "The S&P Futures spent yet another day in the range (2257.00-2268.00).  Bears traded as low as the 2253 area but that move way ultimately rejected and we have subsequently traded back to the 2267/68 range top.  While we made no progress on longer term timeframes the range continues to provide some good morning opportunities.  The 2267.50 area remains resistance and held through the overnight session.  Each side wants to accomplish their goals.  Bulls sustain a trade over 2270 and make a new all time high to initiate an upper band ride.  Bears want to convert weekly pivot and daily midband and test lower support areas. Compression continues on the daily chart. Resolution will come in time.  Until then take advantage of what the market is giving you."

Thursday's Post: "The S&P Futures spent another day in the range (2257.00-2268.00).  While we made no progress on longer term timeframes it did provide some good morning opportunities.  The afternoon trade was basically a 4 handle chop range with a small reach to the upper end of the range at the close. The 2267.50 area remains resistance and held through the overnight session.  Each side wants to accomplish their goals.  Bulls sustain a trade over 2270 and make a new all time high to initiate an upper band ride.  Bears want to convert weekly pivot and daily midband and test lower support areas. Compression continues on the daily chart. Resolution will come in time.  Until then take advantage of what the market is giving you."

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